Eurozone retail sales fell by 0.2% month-on-month in December, continuing a decline from a recent September peak. Weak consumer confidence is getting in the way of a solid rebound in retail sales despite improving purchasing power, per ING Bank.

• Although retail trade is still well above levels seen at the end of 2023, hopes of a short-term revival have fallen.

US consumer confidence fell in January for the first time in six months.  Sentiment fell 4% month-on-month from December and 10% from a year ago, per the University of Michigan Surveys of Consumers.   The Conference Board reported that January consumer confidence fell 5.4% from December.  The biggest impact on sentiment was employment concerns.

US inflation remains on track for 2% for now with the PCE (personal consumer expenditure) deflator and employment cost index offering further signs of encouragement.

US January job creation had fewer than feared downward revisions to historical data, which have cemented expectations that the Fed will not be cutting rates any time soon.